For years it was hard to get excited about PSA/Peugeot-Citroen stock. But last year PSA shares came alive. Today, its stock price is at A227, not far from its highest-ever level of A245.
Analysts credit hot models like the new Peugeot 206 and a sensible restructuring led by Chairman Jean-Martin Folz with driving a 72.2 percent total shareholder return in the year that ended March 31.
The stock price grew steadily throughout 1999, reaching A161 in late July and A183 in November. It was given a new push in early December when Automotive News Europe reported that some members of the Peugeot family who control the company might consider an equity alliance with DaimlerChrysler.
Since then, strong 1999 results, including a 12 percent increase in sales and a 50 percent jump in net profits to A729 million, helped the stock to remain at high levels.
'Peugeot's stock price has reached a ceiling level,' said Arnaud Jeudy, auto analyst with Enskilda Securities in Paris, who targets a A256 stock price for Peugeot SA. 'Now, the market is expecting more than good commercial performance. The next step should be linked to the realization of the common platform policy.'